Lib Dem MP Andrew George to vote against the bedroom tax - how many others will?

The rebel Lib Dem says the policy is "Dickensian in its social divisiveness" and "victimises the most marginalised".

One thing to look out for during today's Commons debate on the bedroom tax, called by Labour, will be the number of Lib Dems who vote against the measure. At its recent conference, the party backed a motion calling for "an immediate evaluation of the impact of the policy" and for "a redrafting of clear housing needs guidelines in association with those representing vulnerable groups including the disabled, elderly and children."

Until new guidelines are in place, it argued that there should be no withdrawal of housing benefit from those on the waiting list for social housing and that there should be an exemption for those who "temporarily have a smaller housing need due to a change in their circumstances, but whose need will predictably return to a higher level (e.g. whose children will pass the age limits for separate rooms within that period)".

But some senior figures went further, with Shirley Williams describing it as "a big mistake" and Charles Kennedy commenting: "I didn’t support it in the Commons and I’m not going to support it here."

One Lib Dem MP who will be walking through the division lobby with Labour is Andrew George. Here's the statement his office have just sent me, I've highlighted one particularly striking section. 

If Government Ministers are so confident that this is the right policy then they should come down to meet some of my constituents who are affected by it and look them in the eye as they attempt to justify it.

I fully understand that in a Coalition Government Liberal Democrat Ministers are expected to hold their noses as they back a Tory policy. But let it be said, the Liberal Democrats should reverse this policy at the first opportunity.

The spare room penalty/bedroom tax victimises the most marginalised in our communities, it undermines family life, it penalises the hard working low paid for being prepared to stomach low paid work, it masks the excessive cost and disruption caused to those disabled people who have to move from expensively adapted homes and is Dickensian in its social divisiveness.

I hope that those Ministers who live in multiple spare room mansions and who strenuously oppose the Liberal Democrat "Mansion Tax" will be prepared to look the victims of this policy in the eye. [Emphasis mine.] Even where those affected are prepared to move to up root themselves from a long standing family home to a smaller property they tell me they can't find anything within 20 - 30 miles. So to escape the bedroom tax they would have to move many miles from their community, their work place, local school, family and social networks, church etc. and re-establish themselves in a place which they may consider to be completely alien. Or of course they could choose a property in the private sector and cost the taxpayer more!

If the policy isn't based on class prejudice it is based on indifference to the most vulnerable families in our communities.

Campaigners protest against the bedroom tax in Trafalgar Square before marching to Downing Street on 30 March 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.